From: user@127.0.0.1
Newsgroups: misc.invest.real-estate
Subject: Carlton Sheet info
Date: Sun, 08 Aug 2004 21:13:29 GMT

http://badbusinessbureau.com/reports/ripoff79931.htm

Carleton Sheets Real Estate Riches through Illegal Flipping of
Properties 


Over the past 5 years, I have ordered the real estate investing
packages from Carleton Sheets and John/Greg Rice (the midget
realtors). While I did not get taken in to pay more for the
"one-on-one" training or the "exclusive seminars," I know I wasted
over $250 on the introductory packages. It took me several years of
trying to use the offered concepts and strategies to realize it was
nonsense. I was confused and frustrated that the folks on the
infomercials made the system work and I could not. I thought that if
real estate investing worked anywhere, it would certainly work in Las
Vegas where I live? By the time I realized the stuff was crap it was
too late to get my money back! 

The "light of day" finally broke through after I got married to an
experienced mortgage broker. My new wife found my Carleton Sheets
stuff hidden in a garage sale box and laughed. I told her that I
didn't see what was funny. I had spent nearly 3 years before we met
trying this stuff to no luck! She sat me down and explained exactly
why Carleton Sheets' system as well as a dozen other similar systems
may have worked 5 years ago, but none of them will ever work today. In
about 1 hour I got a lesson in the reality of investment real estate
mortgage financing. Here is what I learned from my new wife, a
mortgage broker for over 12 years in Nevada, Arizona and Colorado. I
talked with 4 other mortgage brokers in her office and got the same
information.

Prior to 1998, it was possible to buy a property, fix it up quickly
and cheaply, and then resell it for $10,000s in profit. Now known as
"flipping," many mortgage lenders did not care as long as the property
appraised out at the higher value. What turned the tides on this
"money making" industry was the incredible increase in foreclosures
that began in 1999 and has blossomed over the last 4 years. Mortgage
lenders that had refinanced properties valued at $100,000 were finding
them to be worth lots less when they went to foreclosure. As more
properties went into foreclosure, property values dropped. (Property
value is based partly on the previous sale of comparable properties.)
It doesn't take banks long losing money to change. 

Since 2001, states have begun to implement "anti-flipping" laws that
go after real estate investors and appraisers who artificially inflate
property values. Appraisers must now look for comparable properties
within a 1 or 2 mile radius of the subject property to get fair market
values. Many states now require anyone selling more than a few
properties a year to obtain a real estate broker's license. As of
2003, my wife could not think of any mortgage lender that would
refinance a property for cash out if the property was owned for less
than 6 months and most require 12 months. Even then, the owner had to
show real receipts for improvements! 

If someone had to sell their home after less than 12 months residency
in it, the original purchase price would be used as the appraised
value. Also, people hoping to buy homes below their appraised value
and then get the difference as cash at closing will be sad to know it
can't be done! Mortgage lenders will lend money based on a property's
purchase price or appraised value at time of sale - whichever is
LOWER. 

Flipping real estate became such a money loser for mortgage lenders
that they have refused to do the loans! Anyone wanting to engage in
flipping real estate for big money will have to find a source of
funding other than banks and credit unions! Good luck - those are few
and far between and charge too much in interest! My wife explained
that nearly all of the Carleton Sheets-type real estate investment
schemes rely on long gone mortgage financing before the anti-flipping
laws. 

Also, many "real estate investment gurus" recommend making deals with
property owners and have the owner do the financing while you make
payments to the owner over several years and then sell the property
and pay the owner a lump sum out of the proceeds. My wife says that
she has never known a property owner who wanted to engage in that type
of deal. If the investment property is making money without the new
buyer, then why should the owner enter into a deal that will require
higher rents to make 2 people money instead of one?

Finally, my wife and her colleagues in her office made a very common,
but sound observation. If someone has a truly profitable unique real
estate investment program - why aren't those folks still doing it full
time instead of "teaching" others. The money Carleton Sheets and all
others like him make is out of selling information to fools who
believe it will work. The successful students often made their money
before the anti-flipping laws and now have either gone to work for
their teachers selling outdated information OR have gone into the
"real estate investment teaching" business themselves.

One of my wife's fellow brokers did come across a company that puts
out a guide to real estate investment using current mortgage financing
rules. I read the guide and found it interesting. It was meant for
people who want to buy investment property and hold it for rental
income or sell off a property or 2 ever couple of years. It was
definitely not for those who still believe they can flip homes for big
profits in 60 days. Banks and credit unions won't lend the money! 

If they did, my wife and her colleagues would be making money by
handling the purchases!! The flyer I read was from a company called
The Corner Source - here is old email thecornersource@msn.com I don't
do any real estate investment now, but this guide made sense and my
wife says it is good and they don't ask for $1000s for seminars!! Take
it for what it is worth. Real Estate Flipping is Illegal and people
are in jail for it!!

MORE CARLTON SHEETS RIPOFF INFO:
http://badbusinessbureau.com/results.asp?submit22=Search+All+The+Latest+Rip-Off+Reports+Now%21&q1=ALL&q2=&q3=&q4=&q5=sheets&q6=&q7=